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What Is Market Transformation?

Market transformation is a process of strategic intervention in the market to bring about widespread, permanent change. For IMT, this means creating the conditions for higher investment in energy-efficient buildings.

The SAVE Act

Making Homes Efficient and Affordable

Summary

The SAVE Act, introduced on June 6, 2013 by Senators Isakson (R-Ga.) and Bennet (D-Colo.), is legislation to improve the accuracy of mortgage underwriting used by federal mortgage agencies by including a home's expected energy cost savings when determining the value and affordability of energy efficient homes. Utility bills are usually larger than either real estate taxes or homeowners insurance, but they are currently ignored in mortgage underwriting.

​IMT and ACEEE found that SAVE would generate 83,000 jobs and $1.1 billion in consumer energy bill savings in 2020.

The proposal is supported by a diverse coalition of organizations, including the National Association of Home Builders, the National Association of Realtors, the U.S. Chamber of Commerce, the Appraisal Institute, the U.S. Green Building Council, the Leading Builders of America, and the Natural Resources Defense Council (see full list of SAVE Act Coalition members below).

Benefits

The SAVE Act would help revitalize the hardest hit sectors of the economy by providing lower rate mortgage financing for cost effective energy improvements; giving homebuilders and homeowners the option to recover the cost of efficiency investments; and enabling better federal mortgage underwriting while lowering utility bills for American households. Benefits include:

Low cost to the taxpayers. The bill does not add to the current deficit or rely on taxes or fees; instead it removes current obstacles holding back more efficient building and remodeling of our homes.

Remove an impediment to home energy efficiency from federal mortgage policy. Investments in energy efficiency can offer impressive returns to homeowners, paying for themselves in utility bill savings while also increasing a home’s comfort and mitigating the risks of energy price volatility.

Drive business and job growth in the construction and manufacturing sectors. By removing barriers to energy efficiency investments by home owners and builders, the SAVE Act will increase the supply of and demand for energy-efficient new homes and improvements, putting people in the construction, remodeling, and manufacturing sectors back to work.

Lower utility bills for American households. The typical U.S. homeowner pays $2,500 on home energy bills each year. A small upfront investment in energy efficiency upgrades could reduce a home’s energy bills by 30% or more and protect against energy price shocks, all while improving the comfort and value of the home.

No new government spending and fewer mortgage defaults. The bill does not rely on taxes or fees; instead it removes current obstacles holding back more efficient building and remodeling of our homes. A recent study of more than 70,000 mortgages found that mortgages on energy efficient homes were 32 percent less likely to be in default. The study provides strong evidence that the SAVE Act is good credit policy and would help protect lenders and taxpayers from the risk of mortgage default.

Expand the accessibility and affordability of energy efficient homes. The SAVE Act would allow American home owners to finance cost-effective home energy upgrades as part of their traditional mortgage, improving access to the comfort and money-saving benefits of efficiency without increasing the cost of homeownership. The result is better and cheaper access to capital to invest in making homes better.

Appeals to a broad, diverse coalition. The bill brings together a broad and diverse coalition of supporters ranging from the National Association of Realtors and U.S. Chamber of Commerce to the Natural Resources Defense Council and the Alliance to Save Energy.